A dispute over natural gas well proceeds involved one bankrupt defendant and several non-bankrupt defendants. A magistrate judge tried to move the entire case to bankruptcy court, but the district court reversed that decision. The court ruled that because the case involves state contract and tort law—not core bankruptcy issues—it should stay in state court or federal district court, not bankruptcy court.
If you're suing multiple defendants and only one is in bankruptcy, your case may not belong in bankruptcy court. State law claims typically stay in state or federal district court.